Rwanda registers robust Economic Growth
By Rolex Owino
An official report by the World Bank has unveiled that Rwanda is on course for continued economic growth in 2019, despite global uncertainties occasioned by trade wars.
The country’s economy is projected to grow at a rate of 7.8% in 2019. Yasser El-Gammal, the World Bank Country Manager, conferred that Rwanda’s medium-term economic outlook is favourable. He noted that key economic indicators such as inflation, remain low, while investments continue to grow.
The institution, however, called for measures to strengthen private-sector capacity. This vital intervention is directed towards sustaining a high-growth trajectory in the long-term, as opposed to predominantly relying on public-sector investments.
While public-sector investments will continue to support growth over the medium-term, Rwanda needs to strengthen its private-sector, to stay on a high growth trajectory in the long-run, Aghassi Mkrtchyan, a Senior Economist at The World Bank, stated.
Rwanda’s performance is further buoyed by the fact that it’s one of only four countries in Sub-Saharan Africa with a low debt distress status. The country is credited for maintaining a low debt distress level, through the implementation of various noteworthy interventions, such as careful borrowing, prudent loan management and by maintaining a high level of economic growth.
Rwanda’s current debt is valued at 32.9% of GDP, a figure that is below all of its neighbouring Sub-Sahara African cohorts. It has further been noted that due to the country’s laudable usage of its borrowed funds, and high return on investment rates, it still has room to borrow – in a bid to finance its overriding developmental projects.
Source: ASV & TheNewTimes